Sumitomo Mitsui Trust Bank (SMTB) and security token technology provider Securitize have privately placed the first such instrument in Japan in accordance with local legislation.
In Japan, firms are showing a growing interest in security initial offerings (STOs). SMBT is a member of the Japan Security Token Association, recognized by the Financial Services Agency.
What are Security Tokens and Security Token Offering (STO)?
The token was created by tokenizing the certificates of deposit of the beneficiaries, representing the investor’s ownership of the underlying asset. For this, the platform was used by the startup Securitize, whose Japanese division had previously received investments from Sony, Nomura, MUFG, SBI Holdings and Softbank.
Through the technology provider’s portal, investors can validate token status and access documents, and SMTB can manage the accompanying release processes, including regulatory compliance.
Rating agency Rating and Investment has assigned the issued security-token a rating of “a-1”. It reflects the high probability of the issuer fulfilling short-term obligations to creditors.
As a reminder, in April 2020, Securitize added to the functionality the possibility of almost instant purchase and sale of security tokens via a web link through the Instant Access service (“instant access”) through smart contracts.
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